So why would you risk hiring an unqualified Insolvency Expert or Liquidator?
Some faceless operators try to sell liquidations to vulnerable people by charging a fee for unqualified (and usually poor) advice, then paying some Liquidator a portion of that fee to do the actual liquidation. And because this “middle man” isn’t regulated, insured or part of a professional group it’s hard to complain about them, sue them or have them independently investigated.
So before you engage an Insolvency Expert, check to make sure they are:
1. Registered with the Australian Securities & Investments Commission (ASIC)
An Insolvency Practitioner is an independent and suitably qualified person—not a company.
ASIC regulates licensed Insolvency Practitioners and Liquidators You can search the ASIC website to check whether a Liquidator is registered.
As part of the Liquidator’s registration, ASIC checks:
- their qualifications
- their winding up experience
- their capability
- whether they are fit and proper
- whether or not they have been disqualified
- whether they have the required professional indemnity insurance and fidelity insurance. (To see how ASIC
- administers the insurance requirements for registered liquidators, refer to Regulatory Guide 194 Insurance requirements for registered liquidators.)
2. A member of the Australian Restructuring Insolvency & Turnaround Association (ARITA)
ARITA is the professional body for:
- Insolvency Practitioners in Australia
- those working in the field of business reconstruction and corporate and personal insolvency.
All ARITA Practitioner members are bound by the ARITA Code of Professional Practice, and must complete at least 40 hours of Continuing Professional Development each year to maintain their professional expertise.
ARITA members are obligated to adhere to this code of practice, which sets and manages standards of professional conduct. Maintaining and improving professional standards is one of ARITA’s core objectives, and they can investigate any complaint about a member’s professional conduct as a practitioner.
It’s important to check this, as some registered Liquidators aren’t members of ARITA so don’t need to comply with the higher requirements of ARITA code of practice.
3. A member of an accounting profession.
A Liquidator must be a member of an accounting profession. Australia has two main accounting professional bodies—CPA Australia and Chartered Accountants Australia and New Zealand (CAANZ).
Our Liquidators are all members of CAANZ, which means they:
- must comply with CAANZ’s code of conduct
- are regulated by the Australian Accounting Standards Board
- must hold current and acceptable levels of professional indemnity and fidelity insurance.
Liquidation is never an easy thing to do—financially or emotionally. But by choosing the right Liquidator the process will go a lot more smoothly. So why not contact us today for a free consultation, and find out how we can help get the outcome that’s best for you.
For more information on Company Liquidation, check out our Company Liquidation page here.